Acquisition of controlling stock.
1. Any person proposing to acquire the controlling capital stock of any domestic stock insurer and thereby to change the control of the insurer, other than through merger or consolidation or affiliation as provided for in NRS 693A.310 and 693A.330, must first apply to the Commissioner in writing for approval of the proposed change of control. The application must state the names and addresses of the proposed new owners of the controlling stock and contain such additional information as the Commissioner may reasonably require.
2. The Commissioner shall not approve the proposed change of control if he finds that:
(a) The proposed new owners are not qualified by character, experience and financial responsibility to control and operate the insurer, or cause the insurer to be operated, in a lawful and proper manner;
(b) As a result of the proposed change of control the insurer may not be qualified for a certificate of authority under the provisions of NRS 680A.090;
(c) The interests of the insurer or other stockholders of the insurer or policyholder would be materially harmed through the proposed change of control; or
(d) The proposed change of control would tend materially to lessen competition, or to create any monopoly, in a business of insurance in this state or elsewhere.
3. If the Commissioner does not by affirmative action approve or disapprove the proposed change of control within 60 days after the date the application was so filed with him, the proposed change may be made without his approval, but if the Commissioner gives notice to the parties of a hearing to be held by him with respect to the proposed change of control, and the hearing is held within the 30 days or on a date mutually acceptable to the Commissioner and the parties, the Commissioner has 10 days after the conclusion of the hearing within which to so approve or disapprove the proposed change. If not so approved or disapproved, the change may thereafter be made without the Commissioner’s approval.
4. If the Commissioner disapproves the proposed change, he shall give written notice thereof to the parties, setting forth in detail the reasons for disapproval.
5. The Commissioner shall suspend or revoke the certificate of authority of any insurer the control of which has been changed in violation of this section.
6. The Commissioner may retain at the acquiring party’s expense attorneys, actuaries, accountants and other experts not otherwise a part of his staff as may be necessary only for the review of the proposed acquisition of control. Such a review may be conducted only if the parties fail to provide sufficient information to the Commissioner. Expenses chargeable to the acquiring party pursuant to this subsection must not exceed 1 percent of the acquired insurer’s net revenue during the year immediately preceding the year in which the application for change of control is filed with the Commissioner pursuant to subsection 1.
Last modified: February 27, 2006